Uniform tax regulations for companies - a new EC project!
The European Commission has adopted a new project - "Doing Business in Europe: Income Tax Framework (BEFIT)". Its aim is uniform tax regulations in 27 countries of the European Union. This is to create a "fair and stable" business environment that will underpin growth and jobs.
What are the unified tax regulations to bring?
The changes are to apply to taxation of economic activities in EU countries. Uniform tax regulations are expected to reduce bureaucracy, minimize the possibility of tax avoidance, and reduce compliance costs. Moreover, the creation of new jobs and an increase in investment in the single market are forecast. The EC encourages Member States to allow companies to carry tax losses to previous years, which could have a beneficial effect, especially for those companies that were profitable before the COVID-19 pandemic.
Valdis Dombrovkis, Vice-President of the European Commission:
„Taxation must keep pace with changing economies and with our priorities. Our tax rules should support inclusive economic recovery, be transparent and avoid tax avoidance. They should also be effective - for large and small enterprises”.
When are the uniform tax regulations for companies in the European Union to be introduced?
The European Commission declares that it will present the project by 2023. During these two years, the European Commission will allocate funds for productive investments, support digital and ecological transformation and protect domestic revenues.
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